U.S. Treasury Secretary Scott Bessent reassured the market by reaffirming plans to create a strategic bitcoin reserve amid concerns raised by earlier statements.
Statements from Scott Bessent
In a post on X on Thursday, Bessent stated that the Treasury is committed to exploring 'budget-neutral pathways' to purchase bitcoin, reiterating the administration's goal to make the U.S. a 'bitcoin superpower'. He confirmed that forfeited bitcoins will form the foundation of the reserves.
Market Reaction to Comments
Despite the positive statements, earlier comments made in an interview with FOX Business regarding the government's reluctance to purchase bitcoin directly triggered a sharp market reaction. According to CoinGecko, bitcoin’s price dropped from $121,073 to $118,886 within 40 minutes, resulting in a loss of nearly $55 billion in market capitalization.
Future Plans for Bitcoin Reserves
Bessent emphasized that the Treasury has no plans to liquidate its existing holdings, estimating the value of the Strategic Bitcoin Reserve between $15 billion and $20 billion. Data from BitBo indicates that U.S. holdings amount to 198,012 BTC, approximately $23.5 billion at current values.
Scott Bessent's remarks clarify the U.S. government's plans for building a strategic bitcoin reserve amidst market volatility and criticism of execution speed.